week in review

Financial Markets

Last week the Dow Jones essentially recovered its losses before the catastrophic earthquake in Japan and escalated violence in the Middle East.  The Dow started the week at 11,858 and ended at 12,250, a nearly 400 pt gain.  Towards the end of the week, the GDP (Gross Domestic Product) numbers were released and pleasantly surprised traders.   It showed that the 4^th quarter of 2010 grew at a pace of 3.1%, which beat forecasters’ predictions of 2.8% growth.  This is a good indication that the economy has continued to grow which is why stocks   

Bonds sold off in typical fashion as trader’s concerns about the world events ease and decide to look for more fruitful rates of returns in the stock market.  Mortgage rates went up nearly .25% for the week, which matches the sizable shift in stock prices.     

Local Economy and Real Estate Market

The article below discusses the strengthening resale market in Southern Nevada and improving 90 day delinquency rates. 

http://www.lasvegassun.com/news/2011/mar/28/resale-home-market-making-comeback-so-far-year/

Below is an interesting article about the proposed road construction projects for Southern Nevada. Jacob Snow, the director of transportation and commission is quoted as saying that there are 10 billion dollars in road projects that are in the pipleline.  The Federal Highway Administration estimates that for every billion dollars spent on road construction, and estimated 27,800 jobs are created.   

http://www.lasvegassun.com/news/2011/mar/23/report-outlines-40-road-projects-boost-economy-mon/

Important Reminders:

• FHA increases the monthly mortgage insurance premiums from .9% to 1.25% all case numbers pulled on or after April 18^th. 
• PRMI now allows for FHA financing on “flipped” properties with greater than 20% appreciation in less than 90 days.   
• PRMI also is rolling out Home Path for investors by the end of the month

week in review

PRMI now allows for FHA financing on “flipped properties with greater than 20% appreciation in less than 90 days.    

Financial Markets

The Dow Jones experienced noticeable swells this past week, losing as much as 400 pts at one point during the week.  The tragic earthquake and tsunamis in Japan and the concern over their nuclear power plants potentially creating further damage took its toll on US stocks.  Later in the week, stocks rallied, particularly on Friday, when news broke that there was going to be a cease-fire in Libya.  The stock market gained 83 pts and landed at 11,858.  However, for those who tuned into the news this past weekend, you know that the cease-fire didn’t last long. Expect more market volatility Monday. 

The bond market rallied as investors fled stocks for the safety of US bonds in the middle of the week. Mortgage rates dropped but then lost ground Friday as investors began a re-entry back to stocks.    

Local Economy and Real Estate Market

Home sales for February 2011 broke 3,200.  57% (1,833) were foreclosure properties, 19% (617) were short sales and 23% (759) were “regular” sales.  Southern Nevada still remains a cash-heavy market, as roughly 50% of the buyers paid cash for the homes.    

week in review

The “What-if Simulator”: Primary Residential Mortgage is excited to announce the roll out of software that allows us to take a credit report and make alterations to it, to see what the score would improve to based on a certain action taken.  It is designed to take the guess work out of recommending what actions a potential borrower should take to improve their FICO scores. 

Financial Markets

The Dow Jones experienced choppy trading throughout the week, but ended slightly higher than last Friday, up at 12,169.  Investors wrestled with the upbeat unemployment report and political turbulence in the middle-east, which is directly translating into higher oil prices.  192,000 jobs were added in the month of February, and the national unemployment rate dropped to 8.9%, which is always a great signal for future earnings for companies. Surging oil prices could create stiff headwinds for economic growth and put a damper on earnings, which is why stocks gains were muted this week.

The bond market, against all odds actually improved slightly on Friday.  The gains merely recovered losses from earlier in the week, when the ADP payroll report exceeded expectations. (ADP payroll report is always used as a barometer for the real unemployment report that comes out later in the week...kind of like the Golden Globes to the Oscars). 

Local Economy and Real Estate Market

Lon DeWeese, CFO of Nevada Housing Division, announced the roll out of the initial phase of the Mortgage Assistance Program this past week.  $100,000,000 has been delegated to the state of Nevada to help with home ownership retention.  The 1st link is an article in the RJ about the release.  The 2^nd link is the site you can visit to see if you are eligible for home ownership relief funds.

http://www.lvrj.com/business/mortgage-help-has-arrived-for-12-000-households-who-will-get-38-5-million-117303988.html

http://www.nevadahardesthitfunds.org/

Zoning for an amusement park located near the Mandalay Bay has been approved by Clark County Commission.  Not exactly Disney Land but better than nothin’! 

http://www.lasvegassun.com/news/2011/mar/02/county-oks-plans-amusement-park-across-mandalay-ba/